Eastspring’s Gupta Is Positive on Equities, Risk Assets

The video discusses the positive outlook for equity markets and risk assets in 2021, focusing on reflationary proxies and their potential for growth. It highlights the undervaluation of certain US sectors compared to tech, and the potential for earnings recovery. The discussion also covers the value vs growth debate, with insights into Southeast Asian markets. The tech sector's high valuations and regulatory challenges are noted, along with the potential impact of fiscal stimulus on cyclical sectors.

What is the main reason for the positive outlook on US sectors like materials and industrials?

• Reflationary trends and undervaluation

• Increased government regulations

• High demand for tech stocks

• Decrease in bond yields

Which regions are mentioned as having underperformed in financial-heavy indices?

• Europe and Africa

• Singapore and Thailand

• Australia and New Zealand

• North America and South America

What is the potential benefit of the catch-up play mentioned in the transcript?

• It will reduce the need for fiscal stimulus

• It will increase the dominance of tech stocks

• It will lead to a decrease in market volatility

• It will allow underperforming sectors to align with market growth

What is a significant challenge for tech companies in justifying their valuations?

• Decreasing consumer interest in technology

• Lofty earnings expectations and regulatory uncertainties

• High competition from new startups

• Lack of innovation in the sector

How might fiscal stimulus impact the market according to the transcript?

• It will lead to a decrease in tech stock prices

• It will have no significant impact

• It will positively affect deep cyclical sectors

• It will cause a recession